California wants to buy and forgive your medical debt

Medical Debt Relief Act of 2026.

Introduced· 2026-02-18

Who's it for

Who's it for: Everyday People

What it means for you

9/10Helps you

Good for everyday people ·

Plain‑English summary, cross‑checked against the official bill text.

This bill would create a state program to buy and cancel unpaid medical bills for Californians who cannot afford to pay them.

Our take

What we think, in plain words.

Medical debt ruins credit scores and keeps families trapped in poverty. This bill would step in to help. It allows the state to buy up unpaid hospital bills for pennies on the dollar and wipe them out for people making under a certain income. It also forces hospitals to publicly report when they sue patients or take money from their paychecks. If this passes, thousands of people could get a fresh start instead of drowning in medical bills.

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The facts

What the bill actually says, no spin.

Creates a state program to cancel medical debt for people who cannot pay.
Helps people making less than four times the poverty level or whose debt is more than 5 percent of their income.
Forces hospitals to report how much debt patients owe and if they sued patients to collect it.
Creates a special state account for the program, but lawmakers still need to vote to add the actual money later.